centrotherm photovoltaics doubles sales and EBIT in the first half-year

Blaubeuren, 14.08.2008

Sales rise to EUR 140.1 million (previous year: EUR 61.1 million)

EBIT more than doubles to EUR 18.4 million (previous year: EUR 9.0 million)

Strongest growth in the solar silicon area

Order backlog approaches EUR 1 billion level

centrotherm photovoltaics AG, Blaubeuren, continues to report strong growth in the first half of 2008: group sales and EBIT have more than doubled. The group generated sales of EUR 140.1 million in the first six months of 2008 (prior-year period: EUR 61.1 million). Operating earnings (EBIT) reached EUR 18.4 million compared to EUR 9.0 million the previous year.

In the fist half-year 2008 the company has received several major orders from well-known companies. This also continues to be reflected in a high order book level, which raised by EUR 515.7 million to EUR 978.3 million as of June 30, 2008 (prior-year period: EUR 462.7 million). centrotherm photovoltaics reports very high order growth in its solar silicon area: here orders increased by EUR 327.3 million and amounted to EUR 435.0 million as of June 30, 2008. The equivalent level of orders as of December 31, 2007 was EUR 107.7 million.

Due to the gratifying growth of the Group's business, the Management Board of the company is retaining its revenue forecast of EUR 330 million to EUR 350 million for the full 2008 financial year, and an EBIT margin of at least 12.5 percent.

– End of the ad hoc release –

The EBIT margin relative to total output of 12.6 percent was below the previous year’s level (13.8 percent) due to the fact that proportionate consolidation of SolMic GmbH earnings was discontinued (equity method as of January 1, 2008). centrotherm photovoltaics holds a share in SolMic via its subsidiary enterprise GP Solar GmbH. Earnings from SolMic were included on a proportionate basis in 2007. If proportionate consolidation had continued, the EBIT in the first half of 2008 would have been EUR 20.9 million and EBIT margin 13.8 percent. Operating profit before taxes (EBT) displays the subsidiary’s positive contribution: EBT rose significantly within the reporting period from EUR 8.9 million the previous year to EUR 20.5 million on June 30, 2008.

"We are very satisfied with the first half of the year," said Oliver Albrecht, CFO of centrotherm photovoltaics. "Good growth in the silicon business confirms our business model and strategy to further establish ourselves along the solar value-creation chain, all the way through to offering complete silicon factories. Our order backlog shows the great potential inherent in the solar silicon area. Our aim is to further exploit this potential." centrotherm photovoltaics shipped the first plants for the manufacturing of polysilicon to Asia in June 2008. centrotherm photovoltaics service staff members are currently assembling and putting these plants into operation on a local basis to prepare the next important milestone: "first silicon out" for customers.

Oliver Albrecht went on to comment: "Our high order backlog level provides a good indicator of sales growth for the next two years."

centrotherm photovoltaics has further expanded its range of services in the quality control area during the reporting period. The company acquired the entirety of GP Solar GmbH in April 2008. The company, which is based in Constance, provides products, consultancy services, and technology for photovoltaics with a focus on quality control and process technology for the manufacturing of solar cells and solar modules. The complete integration of GP Solar has allowed centrotherm photovoltaics to take an important strategic step in the expansion of its solar silicon business. GP Solar holds a 50 % stake in SolMic GmbH, which is specialized in engineering services surrounding the design and process optimization of silicon factories for photovoltaics and microelectronics.

About centrotherm photovoltaics AG

centrotherm photovoltaics AG, which is based at Blaubeuren, is one of the world's leading technology and service-providers for the manufacturing of solar cells and solar silicon. The broad product spectrum comprises key equipment and turnkey production lines for crystalline and thin-film solar cells. The product range is supplemented by reactors and converters for the manufacturing of solar silicon. centrotherm photovoltaics guarantees its customers important performance parameters such as production capacity, degree of efficacy, and completion deadlines for turnkey lines. The centrotherm photovoltaics Group currently employs 330 staff members at its locations in Blaubeuren, Burghausen, Constance, and Dresden, and operates globally in Europe, Asia, and the USA. The company achieved revenue in the financial year 2007 of EUR 166.2 million, EBIT of EUR 21.1 million, and is listed in the TecDax of the Frankfurt Stock Exchange.